Industrialist buys heritage SoBo bungalow for 180cr

Mumbai: Glamis Villa, a bungalow on Bhulabhai Desai Road off Breach Candy in south Mumbai, was sold for Rs 180 crore on Thursday to an industrialist family. 
    The owner of the over 1,000-sq-m land, the Fazalbhoy family, put it up for sale barely two months ago. It was acquired by M P Aggarwal, chairman of Sajjan India Ltd, on Thursday through a local property broker, it is learned. The Rs 180 crore sum includes a Rs 30 crore payment to a tenant to vacate the premises. 
    The land, part of the larger Westfield Estate, belonged to Hari Singh, the Maharaja of Jammu and Kashmir, till the late 1930s. On it stands today a ground-plus-two-storey bungalow with a carpet area of around 11,000 sq ft and three garages. Sources said the new owner, who currently lives on Carmichael Road, does not plan to redevelop his new acquisition and will probably stay in it. 
BIG DEALS Glamis Villa stands on 1,000 sqm land with 11K sq ft carpet area 

•Industrialist Sajjan Jindal bought a Nepean Sea Road bungalow for 400cr 

•Kapadia Bungalow at Nepean Sea Road sold to Runwal Group for 350cr 

•Villa Nirmala at Carmichael Road bought for 300cr by Ashok Piramal Group and developer Khemchang Kothari

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CAMPA COLA RESIDENTS’ DEMAND ‘Can challenge BMC if it regularizes any other illegal bldg’

Mumbai: Going by the Supreme Court order directing the demolition of illegal portions of Campa Cola housing society, the civic body cannot regularize any other unauthorized structures in the city, residents of the Worli building have said. 

    According to the government data, at least 56,332 buildings in Mumbai are unauthorized. The residents said if the BMC tried to regularize any of those illegal structures, they could challenge it, citing the SC order. They have also requested the state to consider an ordinance that will eventually supersede the Supreme Court order. 
    The residents have recently submitted a legal opinion issued by Jhangiani Narula and Associates to chief minister Prithviraj Chavan, Congress MP Milind Deora and mayor Sunil Prabhu. The legal opinion by advocate Rajiv Narula says the SC order had substantially curtailed the BMC's powers to regularize the Campa Cola building. "In effect, all the other buildings where the construction has gone beyond the sanctioned plan will have to be pulled down as those cannot be regularized as per the SC judgment," the statement says. "All the unauthorized constructions in Maharashtra/Greater Mumbai... will be affected by the said judgment." 
    Residents in their letter to the CM and the mayor have said in the eventuality that their building is razed, consideration of any regularization proposal of any other building can be challenged. There will also be a drop in penalties that would otherwise be collected for regularization, they have said.

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HIGH RISE FOR DHARAVI SLUMDWELLERS

T hese three towers built by Mhada as a pilot project in Dharavi's sector 5 will accommodate 358 families when completed next April. Mhada will verify eligibility of slum dwellers in this sector before allotting them the tenements (280 sq ft carpet each), which are fitted with vitrified tiles, wide common corridors, lifts, welfare centre and balwadi. Each building will be 18-storey high, but further construction permission is awaited from the civil aviation authority. Mhada plans to build 9,200 tenements in high rise buildings on the 64 hectare sector 5.

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Cops draw HC’s ire: Is police station a Mughal durbar?

Mumbai: The Bombay high court on Tuesday came to the aid of a family settled in the US whose property in Juhu worth Rs 32 crore was targeted by alleged land grabbers. 

    A division bench of Justice S C Dharmadhikari and Justice Gautam Patel rapped the Juhu police for their failure to investigate the family's complaints properly and take action. "Is the (police station) like a Mughal durbar where people have to come repeatedly with their complaints," asked the judges. "The police do not take timely action, as a result of which people are forced to come to the courts." 
    The high court has asked the police to record the statement of Pune-based complainant Rajeshree Shrivastava. Shrivastava's brother Rajan Patel owns the Juhu property along with his family members. The court has also directed the police to probe allegations of forgery and file a chargesheet accordingly after completing investigations. 
    Darshan Bungalow is a ground-plus-one-storey structure spread over 6,480 sq ft in a layout known as Hatkesh Society in Juhu. It is owned by US-based Patel and his family. According to advocate Tripti Shetty, the property, due to its prime location, has been repeatedly targeted by builders who tried to grab it in 2008 and 2011. Each time the police registered a case of trespass. 
    The latest incident happened in 2012, when four persons broke into the property and tried to put up a board claiming that the land belongs to 'Stature Lifestyle'. Shrivastava lodged a complaint and the police booked the accused for trespass. At the time of bail, the accused produced documents purporting to show that a member of Patel's family had gifted the property for free to their servant Samarbahadur Singh, who passed it on for redevelopment to Stature Lifestyle. 
    "We brought this to the notice of the police and asked them to add the charge of forgery," said the advocate. But the police failed to take any action. The Patels also discovered that an attempt was made to change the name on the electricity bill for the property. 
BEHIND THE CRITICISM 
    A ground-plus-one structure, called Darshan Bungalow, in a Juhu layout has been targeted many times by alleged land grabbers, according to the family that owns it. After each land grab attempt, cops just registered a case of trespass 
    The latest bid happened in 2012, when four persons tried to put up a board at the property claiming that it belonged to 'Stature Lifestyle'. The four claimed that a member of the owner family had gifted the property to their servant who passed it on for redevelopment

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Builder to gain as Mhada junks prime SoBo chawl acquisition

Mumbai: For the first time ever, the Maharashtra government has cancelled the land acquisition of a residential chawl in south Mumbai, paving the way for the property to be taken over by a builder. The nearly 2-acre plot, which holds seven buildings and 297 tenements, behind Bhatia Hospital at Grant Road has a development potential in excess of Rs 1,200 crore, real estate experts said. 

    Alarmed at the cancellation, a section of the chawl's 1,500 residents slapped a legal notice last week against Mhada, the state agency entrusted with low cost housing, terming the move "illegal" and "without authority of law". 
    The early 20th century Dattatray chawl was among 320 properties approved for acquisition in island city by Mhada. 'No rule in Mhada Act to cancel land acquisition' 
Mumbai:The Dattatray chawl in south Mumbai was acquired about two decades ago under the contentious chapter 8A of the Mhada Act. The scheme provides for a one-time compensation of 100 months' rent from each tenant to the landlord in return for ownership rights; this clears the way for Mhada to acquire the property. 
    Landlords opposed the acquisition, however, and the case wound up before a ninejudge bench in the Supreme Court, where it has been pending for some years. All this while, local builders have been salivating at the development potential of the seven ageing buildings on the sprawling chawl complex. 
    Last year, Mhada's chief officer (Mumbai repair and reconstruction board) placed a proposal before the state government to cancel the land acquisition, even though the Mhada Act does not allow such acquired properties to be "deacquired". In August this year, a housing department official, SL Pulkundwar, wrote to Mhada, cancelling the acquisition and granting permission for the redevelopment of the property by a private builder. 
    Early this month, B B Nagvekar, chief promoter of the proposed Shree Dattaprasad Cooperative Housing Society, sent a legal notice to the state housing department and Mhada against the government's move. "There is no provision in the Mhada Act and its chapter 8A, which gives powers to either Mhada or the state government to cancel the process of acquisition," said the society's advocate Mihir Desai. 
    Requesting the withdrawal of the letter, the notice said, "It is against the interest of the occupants even on merits and my clients apprehend that this has been done at the instance of certain vested interests." 
    In 1994, as many as 254 tenants had approved Mhada's acquisition process. The chawl landlord's application in court later stated that 130 of them had died over the years. Nagvekar wrote to Mhada that almost 80 tenements had changed hands illegally, although chapter 8A did not allow such tenancy transfers. 
    "It is likely that these illegal tenants and their agents are trying to put pressure on the government to de-acquire the land. The government can do it, provided it amends the act," said housing activist and former Mhada president Chandrashekhar Prabhu. 
    Prabhu recently wrote to the CM, asking for filing of FIR against those involved in transfer of tenancies in a property belonging to Mhada; "I also request you to immediately withdraw the housing department letter as it is not only illegal, but also not in public interest." 
CHANGE OF HEART 
KEY FIGURES 
1994 | Mhada acquires Dattatray chawl, one of the oldest in the island city 
7,000 sq m | Plot size 
    1,200cr | Current development potential of the land 
Aug '13 | Govt permits the land's de-acquisition 
    WHAT IS MHADA? 
    Formed in 1976, it is the apex housing authority in the state. Its main task is to build houses for economically weaker sections of the society and the middle class 
    Over 16,000 buildings in the island city pay a cess to Mhada. Most of these were built before 1940. The cess is disbursed whenever these tenanted properties require repairs and reconstruction 
GENESIS OF CONFLICT 
    At the heart of the conflict is a little-known provision of the Mhada Act (chapter 8A). It allows tenants of pre-1940 cessed properties to become owners by paying the landlord 100 months' rent and pave the way for Mhada to acquire the entire property 
    The scheme has to be initiated by at least 70% tenants, who must form a cooperative society, collect money and redevelop the property 
    But its implementation was stayed by the Supreme Court over a decade ago after city landlords challenged the scheme 
    The case was first heard by a division bench in the apex court. It was subsequently referred to a five-judge constitutional bench, which in turn passed it on to a seven-judge bench. The matter was then referred to a nine-judge bench, which is yet to decide on the case

The two-acre Dattatray chawl at Grant Road has a 1,200cr potential

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NCP upset with CM for stalling bldrs’ bonanza

Mumbai: A humungous floor space index (FSI) of up to 10, offered to builders rehabilitating slum dwellers in Pune and Pimpri-Chinchwad, has become a point of friction between the Congress and its alliance partner, the Nationalist Congress Party. 

    The Sharad Pawar-led NCP, which has a firm political grip over this region, is believed to be upset with chief minister Prithviraj Chavan for staying it. Chavan ordered the urban development department to review the regulation 2(7) and is likely to drastically reduce this construction bonanza for private developers. 
    In Mumbai, rules allow a maximum FSI of 5 as compensation in the form of transfer of development rights (TDR) for builders who rehabilitate slum dwellers free of cost in new tenements on vacant land belonging to them. Top government sources said the largesse would benefit a few politically connected builders, who have accumulated large swathes of land in Kothrud and Kalyani Nagar in Pune. 
DAGGERS DRAWN 

• Some builders with political connections have amassed a huge hoard of land in Pune and Pimpri-Chinchwad 

• A state regulation allows them to resettle encroachers on public land and in return gain FSI of 10 to construct on their own lands at premium prices 

• Sharad Pawar is believed to be upset with CM Prithviraj Chavan for deciding to review this regulation, and even cut the windfall for builders Builders 'over-compensated' for little work 
Mumbai:SourcessaidthePuneFSIissuewasoneof the reasons for NCP chief Sharad Pawar's broadside against CM Prithviraj Chavan last month. Without naming the CM, Pawar had said he wasn't clearing files, delaying decisions on crucial issues: "I don't knowwhether (his)hands are paralyzed when it comes to signing files. I hear there are files pending for three months." 
    But Chavan hit back, stating his government's priority was to "take decisions which helped the common man" and not files which are "in the interestof individuals". 
    "The general consensus is that builders are being overcompensatedfor very littlework,'' said a construction industry source.Largetractsof public land in Pune reserved for public amenities are encroached by slum dwellers. Policy stipulates that builders rehabilitate the encroachers in new buildings on a portion of the plot free of cost and build apartments for free sale on the remaining land. On lands required for public purposes, the slum dwellers are accommodated in situ and the builders hand over the remaining area to local authority to build a public facility. The local authority then grants TDR to the developer tobeusedon any of hislands in addition to the FSI normally availableon suchlands. 
    As compensation, builders receive higher FSI to build on their own land, depending in which zone of the city it falls within. FSI defines how much can be built on a plot. For instance, an FSI of 10 on a 1,000 sq m plotwill allow a developer tobuild10,000sq m or ten times the area of the plot. 
    A few Congress MLAs are believedtohavecomplainedto Chavan aboutthishighbonanza, it is learned. "It would lead to rampant construction in areas where the civic infrastructure is lacking in terms of water supply and roads,'' said a housing expert. 
SR - 2 (7):If the rehabilitation project of a slum located on land belonging to a public authority and needed for a vital public purpose, is taken on an unencumbered plot, in addition to the rehabilitation and free sale component, TDR for the area of the land shall also be sanctioned for the owner of the said unencumbered plot.

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35,079 STRUCTURES OVER 30 YEARS OLD

Only 1% of old buildings conduct structural audits After Tepid Response, BMC To Issue Notices Again Mumbai: Despite the spate of building collapses in the recent past, of the 35,079 buildings that are more than three decades old, only 1% have conducted a structural audit.      In June, the BMC had issued a public notice asking societies with buildings more than 30 years old and owners of such structures to conduct a structural audit and submit it to the local ward office. Till date, only 388 buildings have complied with the notice.      The tepid response has surprised civic authorities, who have now decided to send notices again to these buildings and give them more time to fall in line. But if they still do not comply with the notice, the BMC plans to prosecute them. "If buildings fail to adhere to this rule, we will file court cases against them under Section 488 of the BMC Act. This section bars people from living in dangerous structures and risking the lives of people," said a senior civic official.      According to civic officials, there is no foolproof method to check whether or not a building is structurally stable, and predict when a dilapidated building will collapse. Hence, a structural audit is essential.      According to the provision of Section 353B of the BMC Act, it is the obligation of the owner and occupiers of buildings that are more than 30 years old to have them inspected by a qualified structural engineer registered with the BMC, get repairs done as suggested by the engineer and submit the completion certificate, along with the structural fitness certificate, to the municipal corporation.      The notice said that the corrective repairs suggested by the structural engineer should be undertaken within six months to secure the building's structural stability, failing which action will be taken as per procedure. TNN

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Loan defaults stall two mega townships

Mumbai:Real estate firm Hirco has defaulted on payments to lenders for its two large Rs 1,000 crore-plus townships in Panvel and Chennai, casting a shadow on the future of the projects. 

    Work on the firm's project in Panvel, Raigad district, has been stalled for the past few months. The project has a mix of commercial and residential properties and is spread over 300 acres. More than 1,000 apartments are believed to have been sold in Panvel. 
    Hirco claims to have more than 66 million sq ft of development in the two township projects being built by its subsidiary, Hiranandani Palace Gardens. 
    Following the default, the residential township outside Chennai, the Hiranandani Palace Gardens, is under threat of a takeover by the lenders, TOI has learned.HDFC may sell off Hirco's Chennai property 
Mumbai: Two mega township projects undertaken by Hirco have run into trouble following loan defaults by the developer. HDFChad advanced aroundRs 500 crore in two tranches to the Chennai projectjointly promoted by Niranjan Hiranandani and his daughter Priya. Both have since stepped down from theHircoboard.Itisbeing built in three phases on an over-200 acresprawl. 
    The lender has already classified the first tranche as an NPA (non-performing asset) and will classify the second tranche similarly. It plans to send a notice to the firm for repayment under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act(SARFAESI). 
    If Hirco fails to pay up, HDFC will attach the Chennai property estimated to be worth several times the loan. The property would then be auctioned.Marketsourcessaidone of the Hiranandanis may bid for it. "Because of a family dispute, neither family member is willing to bring in fresh capital for the project. With RBI norms becoming stricter on project lending, there cannot be any progress unless promoters bring in money,'' said a source familiar withthedevelopment. 
    Early this year, Tata FinanceCapital Servicesdragged thecompany tocourtfor a term loan default of Rs 76 crore, and demanded the company's liquidation for non-payment. 
    Hirco's chief financial officer, Samir Shroff,wasunavailable for comment and did not respond to text message and phonecallsseeking comment. 
    A Hiranandani Constructions spokesperson said, "Niranjan Hiranandani resigned from Hirco Plc around 22nd December 2010. This knowledge is in public domain. Hence the details of the companies, which you areseeking now,is not available with us." It is learned that Hiranandani has made an offer tobuy outthecompany. 
    "It's a mismanaged company," said a former executive. "A 1.75 million sq ft commercial building in thePanveltownship is 75% complete. It could easily fetchRs500crore." 
    Hirco, listed on the London Stock Exchange's Alternative Investment Market, was set up in 2006 to invest in residential andcommercialcomplexes. 
    On June27,chairman David Burton said in the company's half-yearly statement that progress on the developments appearedsomewhatsubduedwith only moderate progress in the last six months. The company had said in its annual financial statement in September 2012 that the completion of both the Chennai andPanvel projects remained atleast a decade away. 
    "While information flow on the projects remainsunsatisfactory and we have no real clarity over who is really in control of the projects, what does seem clear is that completion will needsubstantialfurther investmentof bothequity andlongertermdebt," Burton hadsaid. Infra problems, title disputes plague affordable homes on city's fringes 
Mumbai: The affordable homes market, thriving on the outer fringes of Mumbai, is beset with problems like lack of infrastructure, poor transport connectivity, issues of land titles and delayed clearances. 
    In 2008, many developers who rode the real estate boom by catering mainly to high-income buyers started enticing lower and middle class clients with smaller properties outside Mumbai limits when the market slowed down. These locations are 60 to over 100 km from Mumbai. But they claimed to have registered brisk sales of smaller flats in places like Boisar, Virar, Panvel, Kalyan, Shahpur, Ambivali and Karjat. These homes cost anywhere from Rs 10 lakh to Rs 35 lakh. 
    But despite frenzied construction in these far-flung places, problems soon arose. Buyers realized that in several of these locations, there was barely any social infrastructure like schools, markets, hospitals and restaurants. Some projects are located 8-10 km from the nearest railway station. Builders too found that permissions from local civic bodies were inordinately delayed. 
    In Vasind near Shahpur, Tata Housing had to scrap one of its affordable homes projects because environmental clearances got stuck in red tape. In Karjat, only phase I of a large low-cost project by Tanaji Malusare City was completed. The remaining phases have failed to take off despite a huge initial demand. 
    Experts said that despite the slowdown in the property market, demand for affordable homes is eight to ten times more than luxury apartments. Shubhankar Mitra, head, strategic consulting (west), Jones Lang LaSalle India, said, "Anticipated supply in this segment is 50,000 to 60,000 tenements. Most of the supply comes from grade B and C developers offering flats in the range of Rs 2,500 to Rs 3,500 a sq ft." 
    "Infrastructure is not adequate. This pushes up the cost, making the project unviable for many developers," added Mitra. 
    Concurred Pankaj Kapoor of Liases Foras, a property research firm, "Locations like Panvel still lack the livability factor. You require human mass for infrastructure to come up and this may take another decade." 
    He said the affordable homes market is relatively better than the luxury one. "Sales to inventory ratio is higher than the luxury segment. The current stock of expensive flats will take at least 100 months to sell. The affordable ones have an inventory of about 30 months, although ideally it should be about 11 months," he added. 
    Builder Nayan Shah of Mayfair Housing, which builds luxury apartments in suburban Mumbai, branched out into the affordable sector a few years ago with a project in Virar. "There is good demand from people who want to sell their tenements in Mumbai and move to a larger, cheaper home further away from the city," he said. 
    Developer Nayan Bheda of Neptune Group blamed the government for not promoting affordable housing. "Permissions don't come in time and there is little support from the local municipality," he said.

1,000 flats have been sold in the 1,000cr Hirco township in Panvel

Hirco's 2012 financial statement said the Panvel and Chennai projects will take at least 10 years

Despite frenzied construction in farflung places like Virar and Shahpur, there is barely any social infrastructure in like schools, markets, hospitals and restaurantsin several areas

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‘Encroachment on govt land? File FIR’ Revenue Dept Directs All Public Land Custodians

Mumbai: Taking a grim view of the increasing encroachment on government land, the revenue department has directed all state bodies that are custodians of public land to file a first information report (FIR) with the local police. The department, in a circular, said that there is a lackadaisical approach to encroachment on government land; in fact, state officials themselves try to protect encroachments.      Swadheen Kshatriya, additional chief secretary, revenue and forests, said the state receives several complaints from elected representatives and public. "We have, therefore, drawn the attention of all state departments to our circular of September 2010 for action to be taken against encroachments on public land," he said.      Utsal Karani, secretary of the Janhit Manch, said the government lacked the machinery to implement its laws and circulars. "It is a good thing, but first they must take citizens' complaints on encroachment seriously and then provide manpower to implement them."      The department has directed all custodians of public land to map the areas owned by the government and other self-government bodies, and display them in the revenue and local self-government offices. The notification said, "If any encroachment is found on government land, then the department responsible for it must file an FIR with the police. If there are attempts to pass the buck, the senior officer in charge must fix responsibility and initiate action," said the notification.      Kshatriya said an FIR should be used as a last resort, instead officials should ensure there are no encroachments. Also, while filing an FIR, officials must keep in mind policies regularizing slums up to January 1, 1995. The slums on land for vital projects, such as Dharavi and airport, are protected up to January 1, 2000, while those on grazing land are protected up to 1994.

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BMC seeks FSI of 4 for redevelopment of its staff quarters

Mumbai: The BMC will write to the state government asking for a floor space index (FSI) of 4 for the redevelopment of its dilapidated conservancy staff quarters. 

    There are over 100 civic staff quarters that house more than 6,500 people. Almost all the structures have outlived their life span and need to be reconstructed. 
    The BMC plans to redevelop 39 such dilapidated buildings in the first phase of the 'Ashray Yojana' project. Of the 39, the civic body has approved six building plans, tenders for which will be called soon. The six buildings are located in the island city. 
    Civic officials say that once the buildings are redeveloped, the employees will get an area of 300 sq ft. Currently they are living in a 100-sq ft house. 
    "We will go ahead with the construction keeping in mind an FSI of 4, but will only build what is permissible according to the current rule. Once the government gives a go-ahead, we will consume the balance FSI," said additional municipal commissioner, Mohan Adtani. 
    The civic body has been facing a tough time vacating these dilapidated buildings as the occupants refuse to move out. 
    Another problem is that the civic body doesn't have enough transit camps to accommodate these residents. Officials say they will first construct transit camps near these six buildings before embarking on the redevelopment work. 
    Once the new buildings are ready, they can be used to accommodate people from other buildings, which will be redeveloped subsequently. The BMC has over 18,000 conservancy staff, of which only 6,600 live in quarters. The redevelopment will create more homes so that the remaining staff can be accommodated. Initially, the BMC planned to develop these buildings through public-private partnership, but it didn't materialize. Now it will execute the plan on its own.

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Ban construction on wetlands in Maharashtra, HC tells state

Mumbai: The Bombay high court on Monday directed the state government to issue a circular to all civic bodies to ensure that no construction or reclamation is permitted on wetlands in Maharashtra. 

    Adivision bench of Justice V M Kanade and Justice S C Gupte also directed the government to state if it will adopt the Centre's wetland atlas as its "brief document". 
    The court heard a PIL by NGO Vanshakti regarding the non-implementation of the Wetlands Rules 2010 in Maharashtra. Any land adjoining a water body, whichgives a distinct eco-system, is a wetland—it could be both coastal or inland and include mangroves, marshes, swamps among others. 
    Vanshakti's advocate Gayatri Singh argued that the state has neither identified wetlands in Maharashtra in its brief document nor has it not constituted the Wetlands Authority. Assistant government pleader G W Mattos said he would seek instructions and conceded that "this PIL is in public interest". 
    When Singh informed the court that construction work is being carried out on wetlands, the judges issued directions that no construction or reclamation activity could be permitted by civic bodies without the court's permission. 
    When Thane Municipal Corporation's advocate Narayan Bubna said that this order would come in the way of ensuing public works and other constructions, Justice Kanade retorted, "Are you arguing for the Thane Municipal Corporation or for the developers?" 
    The judges also said that if the state government decides to formulate its own brief document on wetlands, it has to inform the court in how much time it would do so. The urban development department secretary has also been directed to notify this order to all civic bodies.

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Bank premises charged four times more property tax than beer bars

Mumbai: Owners leasing out properties to banks will have to cough up more than four times the property tax paid by bars under the BMC's new capital value-based system. The new tax is almost twice of what is applicable to a five-star hotel and nearly 20 times more than that for a residence.      Take, for instance, Bhulabhai Desai Road. Property tax for banks in the locality is calculated at Rs 292 per square feet a month whereas on VP Road in Khar it is Rs 68.7.      A document in possession with TOI(submitted by corporator and Samajwadi Party leader Rais Shaikh to municipal commissioner Sitaram Kunte) specifies the break-up of property taxes for various categories—residence, shop, restaurant and bar, five-star hotel, shopping mall and bank (ground floor and first floor).      On V P Road, for instance, yearly property tax calculations for a bank with a 200-sq-m branch work out to Rs 17.7 lakh (for the ground floor) and Rs 13.2 lakh (first floor).      This proposal, which was passed in the civic standing committee, will be reopened following several objections.      Justifying the BMC's stand, Rajiv Jalota, additional municipal commissioner, said, "Most banks in Mumbai are leasehold properties and not self-owned, except for old banks such as Bank of Baroda. When we conducted a study we learnt that in the new system the amount collected was much lower than in the previous system. So, that is why we were constrained to hike it. Even by keeping rates on the higher side for banks, we are still suffering a loss.''      Rahul Shewale, standing committee chairman, said, "We have formed a committee which will study the objections and submit a fresh proposal to reduce taxes. It will be reopened in the standing committee and implemented in 2014-15. The decision regarding banks that have been issued bills with retrospective effect from April 2010 is pending."      A Property Owners' Association circular said taxes are "extremely high" in case of offices, premises with banks and financial institutions, and will lead to banks shifting base.      Showing the BMC bills, a man who has leased his property to a bank in Vile Parle said, "I used to pay Rs 7.5 lakh annually through the earlier rateable value system. Now I have to shell out Rs 13.35 lakh in the capital value-based system."      Vinod Shah, who has leased his premises for an HDFC Bank branch, said, "Does the BMC want us to stop leasing to banks and venture into beer bars?" Another owner who has leased to Kotak Mahindra Bank and HDFC Bank said, "Banks are a basic necessity, not a luxury. They provide services to the public free of cost."

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SLUM REHABILITATION PROJECTS: A VIABLE OPTION

VIBHA SINGH explores why a slum redevelopment project can be an excellent option for buyers who have a lower budget

    Junaid Khan is really happy after buying a flat in a slum rehabilitation project in Kurla from a reputed builder. According to Khan, "It was after a long discussion with my family and friends, weighing the pros and cons that I decided to invest in the project. Many friends were of the opinion that the quality would differ as the project was being done on a budget. After a lot of research and many visits to the project site, I decided to buy a flat in the project." 
    According to the Slum Rehabilitation Development (SRD) scheme, a builder willing to undertake a project under this programme, provides free housing to the slum dwellers and uses the extra FSI to build and sell apartments in the open market. This extra FSI can either 
be in the form of a separate building in the complex or away from it. There may even be extra floors atop a building. This means that buyers opting for a slum redevelopment project may get slum dwellers as neighbours, either in the same building or in an adjoining one. 
    Many home buyers are hesitant to buy a flat in SRA projects as most of them think that slum dwellers are a nuisance, who dirty the surroundings and there are plenty of problems which people have to face due to them. According to architect Mukesh Mehta, "People from the middle-class or the upper middle-class strata who avail such housing, definitely do not like to stay in the same building as the slum dwellers. They expect accommodation away from them." 
    Former MHADA chief UPS Madan corroborates the same. "It's a fact that people who buy in the free sale component of SRA projects do not want slum dwellers residing too close to them. This is one of the reasons why the scheme did not take off well. However, many builders are trying to provide amenities at an affordable price; so hopefully, people will start appreciating these projects," adds Madan. 
    Given this response, developers have now begun to build a sort of partition between the slum rehab and free sale buildings. Take the case of Kalachowkie's Shraddha Society (rehab buildings) and Girnar Towers (free sale buildings). The developer has not only built an iron gate between the buildings but has also painted them differently. In addition, he has provided different amenities to residents of the free sale buildings. 
    Sarang Wadhwan, vicechairman and managing director, Housing Development & Infrastructure Ltd, opines that "There is a clear-cut demarcation in slum building regulations about the infrastructure and environment. Most of the buildings are given additional amenities and a bigger layout is created so that space is not choc-a-bloc in these setups. If you are considering such projects, you need to check out the layout and facilities. The buildings are usually well-spaced and residents have solar lighting for streetlights, rainwater 
harvesting and grey-water recycling." 
    At the end of the day, the rising cost of land and building materials drive people, especially those living on low incomes, to seek cheaper options. In Mumbai, in order to buy cheaper houses, many people have invariably suffered at the hands of fly-by-night developers with no reputation to protect. This is regrettable because many reputed developers too, have projects in various price bands. In other words, a lower price does not have to mean dangerously low construction quality. Kanti Lal, who bought a flat in Deonar, says, "When I bought this flat, I made sure that there was a gate between the two buildings. The problem is that most of us have experienced that there is some or the other nuisance created by slum dwellers." 
    For over a decade now, the SRA has been working to make this option work for people with low budgets. Ujwal Uke, CEO of SRA informs, "The plan for each development involves five stages and first requires 70 per cent approval from slum dwellers to relocate to modern buildings built in place of their current homes. In such cases, the builders construct buildings and allot one side to the slum dwellers and sell the other apartments to private buyers." 
    Kaushik More, director, Omkar Realtors & Developers Pvt Ltd, advises that "One should examine the track record of the builder. Also, check the construction quality and amenities being offered along with the current financial strength of the project." 
    Many reputed builders such as Unitech Limited, Lokhandwala Infrastructure, Hubtown Limited and HDIL, etc., have dived headfirst into the slum rehabilitation scheme bandwagon. As a result of this, industry experts expect quality layout and infrastructure, which would have a positive impact on the segment. 
QUICK 
BYTES 
    A BUILDER WILLING TO UNDERTAKE A PROJECT UNDER THIS PROGRAMME PROVIDES FREE HOUSING TO THE SLUM DWELLERS AND USES THE EXTRA FSI TO BUILD AND SELL APARTMENTS IN THE OPEN MARKET. 
    DUE TO THE INVOLVEMENT OF MANY REPUTED BUILDERS, INDUSTRY EXPERTS EXPECT QUALITY LAYOUT AND INFRASTRUCTURE, WHICH WOULD HAVE A POSITIVE IMPACT ON THE SEGMENT.

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HC evicts 50/m renter who refused 1cr offer to move out of old building

Mumbai: The Bombay high court has directed a Juhu tenant, the lone occupant of a dilapidated building, to vacate her flat within one month. The tenant, Esther Manickam, who has been paying a monthly rent of Rs 50 for decades, was offered Rs 1 crore by the owner to move out of old building but she had refused. 

    Justice Anoop Mohta refused to grant the tenant any relief against the demolition notice served by the BMC for the old building which has been declared dangerous.
    "The structure if it is required to be demolished and as except Esther all have already vacated, there is no reason that the building in question (should) be repaired by the owner only to permit her to occupy one flat in question," said Justice Mohta. The judge cited earlier orders of the court that allowed "the corporation to evict occupier/owner of dilapidated building even by force". 
    The court said the tenant's offer to repair the premises was of "no assistance as it would cause further complications and especially when no one else is occupying the other portions". 
    The court said it cannot direct that the building be maintained just because a lone opposing tenant wants to continue to occupy a dangerous building. 
    Esther, who has been staying in the Juhu flat measuring 340 square feet for decades and paying a monthly rent of Rs 50, refused to move out of the building despite the landlord's offer of Rs 1 crore. 'Forcing owner to maintain bldg for one resident unjust' 
Mumbai: The BMC had earlier this year served a demolition notice on a Juhu building which had been classified as dangerous. A report by VJTI also said that repairs were not viable for the old building. But the tenant, Esther Manickam, had rejected the Rs 1 crore offer by the owner to vacate and insisted on a flat in a new building on the same premises. The landlord and the developer refused to give her that saying 13 other tenants of the building had accepted the same offer. 
    The Bombay HC said it could not overlook the expert's opinion and said that Esther's claims in her applications were "contradictory, inconsistent and in fact self destructive". 
    "Esther, though at her risk is occupying the premises alone and compelling the landlord/owner to maintain the whole premises/building in spite of the clear offer given to her, is unjustifiable," said the judge. 
    "The owner of the property is entitled to deal with the property. Even otherwise, tenants cannot object to transfer and/or even to create thirdparty rights or interest in such property by the landlord. The owner, therefore, if he wants to develop the property, but for want of insistence to have permanent alternate accommodation in the same premises, (and hurdles are created) to the whole project, is entitled to oppose the action of the tenant," the court said. 
    "The costs already incurred by paying a huge amount just cannot be overlooked merely because one tenant is opposing to develop and/or not permitting the owner to develop the property." The HC said that the owner of the property cannot be compelled to give a specific offer to a tenant. 
    The HC refused to give Esther any reprieve from the demolition proceedings and allowed her four weeks' time to vacate her flat on the condition that she files an undertaking to move out.

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